Texas shoppers will get a brief break from sales tax in early August as the state’s annual sales tax holiday returns Friday, Aug. 7, and runs through Sunday, Aug. 9. The exemption covers qualifying clothing, footwear, certain school supplies, backpacks and face masks — provided purchases are made from a Texas seller or an online/catalog business operating in Texas, the Texas Comptroller’s office says.
What the exemption covers
The exemption is aimed at families getting children ready for the school year and shoppers buying everyday apparel. Items that generally qualify include:
- Clothing and footwear priced under $100 per item
- School supplies (many common classroom items under $100)
- Backpacks under $100, including wheeled backpacks and messenger-style bags
- Cloth and disposable face masks
- Certain small electronics commonly used for school, such as calculators and writing tablets, when under the $100 threshold
To benefit from the exemption, each individual item must meet the price and category limits. For example, a jacket costing $100 or more would not be exempt even if other clothing purchases qualify.
What doesn’t qualify
The holiday has a long list of exclusions. Notable items that remain taxable include:
- Computers and computer software
- Textbooks
- Jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets and watches
- Clothing or footwear rentals, alterations and cleaning services
- Subscription clothing boxes and specially designed athletic or protective clothing/footwear
- Items used to make or repair clothing (fabric, thread, yarn, buttons, snaps, zippers)
Shoppers should take care: many accessories that seem like clothing — such as watches or handbags — are excluded, as are high-ticket electronics and textbooks. If the retailer rings a single bundled price for mixed items, exemptions may not apply unless the store separately charges for qualifying items.
| Category | Likely status during holiday |
|---|---|
| Children’s and adult clothing under $100 | Exempt |
| Backpacks under $100 | Exempt |
| Calculators and writing tablets under $100 | Exempt (if under $100) |
| Computers and software | Taxable |
| Jewelry, handbags, luggage | Taxable |
Where and how the exemption applies
The exemption applies only to purchases from sellers doing business in Texas. That includes brick-and-mortar stores in the state as well as online or catalog sellers that have nexus — a physical presence or sufficient business activity — in Texas. Buying from an out-of-state seller who does not do business in Texas typically won’t qualify for the exemption.
Retailers will be responsible for applying the exemption at the register. Shoppers should inspect receipts to confirm items were exempted; if a clerk rings an item as taxable, ask for clarification or a manager. Keep receipts for returns or proof of tax-exempt purchase.
Practical tips for shoppers
- Make a list and prioritize essentials: prioritize items likely to exceed the threshold outside the holiday, like shoes or multiple backpacks.
- Check prices on single items: the limit is per item, not per transaction. Buying three shirts at $99 each could save you more than buying one $297 outfit that would be taxable.
- Watch for bundled offers: ensure qualifying items are priced and scanned separately to get the tax break.
- Confirm online sellers’ Texas status: look for information on whether the catalog or website does business in Texas or contact customer service.
The Texas Comptroller’s office provides detailed lists and guidance for shoppers and retailers to determine qualifying and nonqualifying items. With schools around the state opening in the weeks after the holiday, parents often use the three-day window to stock up on supplies and clothing without the added cost of sales tax.
It’s a small window but a useful one: for many Texas families, skipping sales tax on dozens of modest purchases adds up. Plan ahead, check prices on single items, and remember that big-ticket electronics and textbooks remain taxable even during the holiday.
